Overview
- ServiceNow shares ticked up in recent trading even though the stock is still down about 43% for the year.
- Wall Street keeps cutting price targets yet mostly holds positive ratings, with fresh trims from Citi, Mizuho, RBC, UBS, Deutsche Bank, TD Cowen, and Baird.
- Analysts flag a steep drop in U.S. federal commitments, with estimated Q1 obligations down about 72% year over year, which pressures cRPO, a backlog measure of contracted revenue.
- The company says its full product lineup now uses AI and it rolled out Context Engine to connect data for AI agents and Build Agent so developers can deploy workflows on the platform.
- Q1 results are the next catalyst, with Oppenheimer modeling roughly $3.74 billion in revenue, or about 21% growth, and some potential upside as investors gauge whether AI usage shows up in paid metrics.